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    Tuesday, April 16, 2024

    Living in Connecticut getting a bit more expensive

    Enjoy yourself today. Go buy something. Anything. Because almost anything you buy today will be cheaper than it will be tomorrow.

    Here are many of the tax increases that take effect Friday, the first day of the 2012 fiscal year:

    • The sales tax rate jumps from 6 to 6.35 percent.

    • The income tax property credit shrinks from $500 to $300.

    • There will be a new "luxury" sales tax rate of 7 percent for motor vehicles over $50,000; boats over $100,000; jewelry over $5,000; clothing, footwear, handbags, watches and luggage over $1,000.

    • The cigarette tax increases by 40 cents to $3.40 a pack. Taxes on snuff rise 55 cents to $1 per ounce. Cigar taxes can now reach 50 cents per cigar.

    • The diesel fuel tax increases by 3 cents to 29 cents per gallon.

    • The number of income tax brackets increases from three to six, with the top marginal rate rising 0.2 percent to 6.7 percent. The rates are 3 percent, 5 percent, 5.5 percent, 6 percent, 6.5 percent and 6.7 percent. Withholdings begin Aug. 1 for the new rates, which are retroactive to Jan. 1, 2011.

    For single filers, the 3 percent income tax rate applies to the first $10,000 of Connecticut taxable income; the 5 percent rate on incomes between $10,000 and $50,000; the 5.5 percent on incomes of $50,000 to $100,000; the 6 percent to incomes of $100,000 to $200,000; the 6.5 percent on incomes of $200,000 to $250,000; the 6.7 percent on incomes over $250,000.

    For couples, the 3 percent rate will apply to the first $20,000 of income; the 5 percent on $20,000 to $100,000; the 5.5 percent on $100,000 to $200,000; the 6 percent on $200,000 to $400,000; the 6.5 percent on $400,000 to $500,000; the 6.7 percent on incomes over $500,000.

    • Hotel room taxes will climb from 12 percent to 15 percent.

    • Taxes on renting or leasing a motor vehicle for 30 days or less rises from 6 percent to 9.35 percent.

    • The store cost of beer, wine and spirits will likely rise as a result of a 20 percent increase in the excise tax on alcoholic beverages.

    The following items that are not taxed will now be subject to sales tax:

    • Clothing and footwear under $50, even if bought from a thrift shop.

    • Pet grooming, boarding services and obedience training.

    • Cosmetic surgeries and services, including Botox.

    •Manicures and pedicures.

    • Nonprescription drugs such as aspirin and Tylenol.

    • Car towing.

    • Taxi services.

    • Knitting yarn and fabric.

    • Valet parking at airports.

    • Yoga classes at a yoga studio.

    • Spa services.

    • A 10 percent admissions tax will take effect Jan. 1, 2012, for visitors to event facilities across the state, including Dodd Stadium in Norwich, the Waterford Speedbowl and Nature's Art in Oakdale.

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